A few key results

Science-based target

Set to reduce our greenhouse gas emissions by 21% from 2015 levels by 2025.

$70bn environmental financing target

Financing activities planned to help address climate change and support the transition to a low carbon economy have increased to $70bn by 2025 from our previous target of $55bn.

Why is this important?

NAB recognises that climate change is a significant risk and a major challenge for the global economy and society. Financial regulators have also acknowledged climate change is a systemic financial risk which they are incorporating into supervisory frameworks.

We support the transition to a low carbon economy, and will seek to manage our portfolio to align with the Paris Agreement goal of keeping global warming to less than two degrees Celsius, striving for 1.5 degrees Celsius above pre-industrial levels. We will review targets each year against the latest global climate scenarios and relevant technology developments.

NAB will take a range of actions to help meet the goals of the Paris Agreement on climate change while supporting security of energy supply in Australia and New Zealand and working with customers, related suppliers and their employees and communities in which they operate.

These measures include:

  • Increasing plans to provide environmental finance from $55 billion to a targeted $70 billion by 2025. We are Australia’s largest arranger of renewable energy finance1 and 69% of our energy financing portfolio in 2019 was for renewables.
  • Supporting current customers involved in coal-fired power generation that are implementing transition pathways aligned with Paris Agreement goals of 45% reduction in emissions by 2030 and net zero emissions by 2050. NAB will not finance new or material expansions of coal-fired power generation facilities unless there is technology in place to materially reduce emissions.
  • Capping thermal coal mining exposures at end of financial year 2019 levels and reducing thermal coal mining financing by 50% by 2028 and intended to be effectively zero by 2035, apart from residual performance guarantees to rehabilitate existing coal assets. NAB will not take on new-to-bank thermal coal mining customers.
  • Increasing our internal renewable energy consumption commitment from 50% to 100% by 2025 and joining the RE100 initiative.

A long-standing objective of our climate change strategy has been to learn by doing and then incorporate this knowledge into how we manage environment, social and governance (ESG) risks and provide products and services to assist our customers.

Our climate change strategy focuses on the following four areas:

  • Leadership commitments
  • Developing climate change knowledge and insights
  • Supporting our customers through the low-carbon transition
  • Investing in organisational capability to identify and respond to climate change risks and opportunities.

For more details about our climate change strategy and governance refer to our Sustainability Report (PDF, 2 MB).

Download our Environmental Agenda (PDF, 301 KB).

Important Information

1. Data Source: BloombergNEF Country Profile for Australia - Top Renewable Energy Players (2004 to 3Q 2019).

What do we do?

Discover more

Environmental performance

Our environmental targets, assurance and certifications help us operate more efficiently while addressing key environmental challenges.

Environmental products and services

We’re helping our customers take action for the good of the environment and their business.

Natural value

We’re integrating natural capital considerations into our day-to-day decision making and risk assessment processes.

Resource scarcity

We’re working towards minimising waste and reducing consumption.